According to the GF Securities Research Report, Zhejiang Energy Power (600023.SH) is the leading coastal thermal power plant, and high ROE is expected to increase dividends and net assets. Referring to peer valuation, the company is expected to accelerate the utilitariization process, and give it a 1.3 times PB valuation in 2024, corresponding to a reasonable value of 6.63 yuan/share, and for the first time, cover a “buy” rating. In 2023, the company's power generation capacity was 163.2 billion kilowatt-hours (+7.4% year-on-year). Currently, the company's thermal power profit has been drastically recovered (23Q3 weighted ROE reached 9.3%, compared to 9.2% in 2020), and it is estimated that the net assets of thermal power in operation in 23Q3 have been restored to 87%. The supply and demand for electricity in Zhejiang is tight. It is expected that the high ROE level will be maintained along with the maintenance of the Changxie Coal contract and the implementation of electricity prices for coal power capacity/auxiliary services; considering the full commissioning of the coal power project under construction and the installed capacity of the company exceeds 40 GW, the net assets are expected to reach 96.4 billion yuan.